Chongqing-based Chinese steelmaker Chongqing Iron and Steel Co. (Chongqing Steel) has announced that in 2010 its shipbuilding plate production rose by approximately 80 percent year on year to 1.7 million mt. The surge in shipbuilding plate output resulted from the commissioning by Chongqing Steel of its 4,100 mm hot rolled plate production line and the high capacity utilization rates of its other steel plate production lines last year.
Shipbuilding plate production accounts for over 70 percent of Chongqing Steel's operating profit. Chongqing Steel has been expanding its production of shipbuilding plate in recent years, while it has reduced the share of construction steel in its product mix.
It is expected that Chinese domestic demand for shipbuilding plates will increase significantly due to the thriving shipbuilding industry in China and the increased volume of new ship orders. As a result, Chongqing Steel's output of shipbuilding plate is expected to increase further in 2011.